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Old Mutual soars on split speculation

Mar 07 2016 11:43
Carin Smith

Cape Town - Old Mutual [JSE:OML] confirmed on Monday that all options for its strategic review are being considered, but emphasised that no decision has been made yet.

The group said when its new CEO Bruce Hemphill joined on November 1 2015, it announced that a strategic review would be conducted. At the time of his appointment, Hemphill said he looked forward "to leading the executive team and the Group in the next stage of its development".

The statement follows what it calls "media speculation".

At the same time, Old Mutual's banking arm Nedbank Group [JSE:NED] said in a statement it has had a longstanding commercial relationship with Old Mutual "that is a source of value underpinning the successful collaboration activities both in South Africa and the rest of Africa".

According to Nedbank, it and Old Mutual have been engaging collaboratively as part of the ongoing strategic review being conducted by Old Mutual under Hemphill.

"Nedbank Group shareholders are advised to exercise caution when dealing in Nedbank Group securities until an update on Old Mutual's strategic review is provided on March 11 2016," the bank said.

Old Mutual's share price surged on Monday, adding 8.91% to R42.67, while Nedbank gave up 0.43% to R189.68.

Old Mutual is set to announce its preliminary results for 2015 on March 11 and said it will provide an update on the strategic review at that time.

Sky News reported on Sunday that Old Mutual is drafting a plan to split itself up into four standalone companies, namely Nedbank, its U- focused wealth unit, its emerging markets operation based in South Africa and its institutional asset management business.

Old Mutual Wealth is reportedly already being eyed by two buyout firms - Cinven and Warburg Pincus - for a multibillion pound joint cash offer.

READ: Old Mutual break-up: Details will be unveiled

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nedbank  |  old mutual  |  banking  |  financial services


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